PIP43: Phoenix Plan (pt. 1)

PIP43: Phoenix Plan (pt. 1)
Author: MatterTurbulent#5161
Reviewer, submitter: Prye#4845
Required Quorum: 100M $PEOPLE (if not reached, the proposal will need to exceed 90% of the votes to pass)
Vote Duration: 5 days

Description

On March 6 an exploiter drained 76ETH from the PeopleDAO treasury, constituting approximately 95% of the reserve funds. This plan articulates the changes the DAO should make in order to survive and continue operations, including:

• Consolidation of remaining capital into the treasury
• Increased alignment towards revenue-generating activities
• Further austerity measures
• Restructuring of teams, streamlining operations
• Redefining treasury management processes

Consolidation of remaining assets

As of March 7th, the PeopleDAO treasury holds approximately $4.3k USD worth of various tokens (not including the $SAFE token which is currently locked up). The DAO should conduct the following actions to consolidate its remaining assets:

1. Transfer treasury funds on other chains (Binance and Polygon) to Ethereum, approximately $5k USD
2. Refund the UnumDAO donation, approximately $12.4k USD
3. Seek to claim the remaining funds in PandaDAO treasury, approximately 14.3k USD
4. Merge LanguageDAO treasury with PeopleDAO treasury, pending LanguageDAO's approval, approximately $1.3k USD

Summing all the potential assets, in the best case scenario, the treasury will reach $33k USD. By the end of 2023, the $SAFE token might become transferable, possibly unlocking another $10k-50k USD.

Increased alignment towards revenue-generating activities

The DAO is poised to launch two NFT collections, Afro Piece and For The People, each of which represent revenue generating opportunities. Another Accelerator project, Perpex, could generate substantial revenue upon fundraising, estimated to occur in late-Spring/early-Summer.

The DAO should enter an emergency operation mode, focusing teams and contributions towards launching these projects, and suspending non-related non-essential activities, namely:

• Suspend onboarding activities
• Conduct Accelerator-related AMAs rather than general DAO AMAs
• Research and consider adopting other operational models, e.g. project-based structure
• Implement KPI and other indicators to evaluate the impact of individual DAO activities

Further austerity measures

During the budgeting for Season 4 the DAO began implementing austerity measures in response to forecasts about limited runway. Teams budgeted for fewer and lesser rewards. The DAO should increase these austerity measures. The DAO should return to a centralized budgetary process rather than on a team-by-team basis, to ensure greater checks around spending.

Core Team will coordinate with Team leads to ensure March rewards from the beginning of the month get paid out, but contributors should recognize that we don’t have the funds to issue the same output of rewards as months past.

Overhaul of treasury management processes

An overhaul of the current accounting task aggregation, summary, and execution is required. A new systematic approach will be introduced to cover up DAO's current operational security loophole that resulted in the exploitation. As such, the following temporary implementation will be adhered:

1. Centralised compilation of pending rewards into a CSV file on GitHub
2. Validation of the data, export of the file from Github into Safe
3. Multisig group meeting and validation of the transaction

Additionally, the DAO and multisig members will utilize extra support tools, such as browser extensions and decentralized applications, to gain further details and insights on all treasury changes. A private standard operating procedure will be defined and provided to all core members and multisig members to enforce standardized operations for all treasury management actions.

Voting choices

1. YES - Approve the proposal
2. NO - Deny the proposal